Start-up basics - Georgia Department of Economic Development

S U B TART- P ASICS

An Overview to Starting Your Own Business

Funded in part through a cooperative agreement with the U.S. Small Business Administration.

Introduction

This manual is a publication of The University of Georgia Small Business Development Center. Business consulting, information, and publications are available through the SBDC network offices listed at the end of this publication.

The SBDC program is designed to provide quality business and economic development assistance to businesses and prospective businesses in order to promote growth, expansion, innovation, increased productivity, and improved management. These objectives are accomplished by providing one-onone consulting and business training programs, assisting clients with exporting and procurement, supporting minority business development, conducting applied economic research, and fostering rural development.

This material is designed as a step-by-step introduction to the issues every new business must face. Our primary goal is to present a "way of thinking" that will help you plan, start, and successfully operate your business. Short cuts are not recommended.

Business consultants are available for individual conferences, but your advanced preparation is required. Please complete the "Business Development Questionnaire" (BDQ) located in the appendix and mail the results to the office most convenient to you. The approach presented in this kit will help you complete the BDQ and evaluate various business decisions.

If you decide to pursue your idea, completion of a detailed business plan will probably be the next step, and the network of SBDC consultants can assist you. The preliminary work covered in this manual will put you well on your way toward an effective business plan.

Thank you and good luck.

Table of Contents

STEP 1:

Is My Business Idea Feasible?......................................................................1

Ask Yourself Some Tough Questions Researching Your Market Break-Even Analysis

STEP 2:

Operating Legally..............................................................................................4

An Overview Information Sources for Business

STEP 3: Building Your Team........................................................................................12

STEP 4:

Financing Your Business...............................................................................13

How Much Money Do You Need to Start This Business? Steps in Financial Projections Where Do I Get the Money?

STEP 5:

Pulling It All Together....................................................................................17

Why Write a Business Plan? Business Plan Outline

Before you begin or as you develop your business, whether you are new to the state or not, feel free to contact the Georgia Small Business Development Center for free consulting, guidance, and direction. Find your local office at .

STEP 1: Is My Business Idea Feasible?

Ask Yourself Some Tough Questions...

Do you have what it takes to start your own business? Many people feel that they only lack the money to start or only need help with the legal and tax issues, but these are just a few of the considerations entrepreneurs need to address. The following are a few of the questions every new entrepreneur should consider. When answering these questions, think of an example.

o Do I have confidence and optimism about my ability to overcome obstacles?

o Do I accept responsibility for my actions?

o Do I like being in charge?

o Am I able to function in an environment of uncertainty?

o Am I able to motivate and inspire people?

o Am I an effective salesperson?

o Am I a fair negotiator?

o Do I understand my own limitations and know when I need to ask for help?

o Am I easily discouraged?

o Am I willing to devote whatever time and energy it takes to be successful?

o Is the risk of my financial assets worth the expected rewards?

o Do I have a history of success at things to which I am committed?

o Do I have a strong support group of family and friends?

Is My Business Idea Feasible?

1

Researching Your Market

(This information will help you complete the MARKETING section of the BDQ.)

Many businesses will require some outside research to estimate the demand for products/services. This is especially true if you do not have extensive experience in your new venture. Start by listing the questions you need to research (see marketing section on BDQ). Listed below are some ideas for where to find answers to your questions. (Be creative and determined.)

Secondary Data:

Internet

Public libraries (see your reference librarian for the sources that will best fit your needs).

Prospecting lists/directories. Market studies, industry information. Computer assisted periodical searches. Competitor, supplier information. Economic forecasts.

Trade associations - trade journals and trade shows.

SBDC, SCORE, colleges and universities.

Primary Data:

Your experience, people you know in the industry.

Survey prospects to determine what they want.

Observe and interview similar businesses (especially outside your trade area).

Suppliers, vendors, and bankers.

Employ students or interns to conduct surveys.

2

Is My Business Idea Feasible?

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